My sister has a questionable financial history of CC debt, and poor choices with automobiles (several, which have cost her quite a bit of money rolled from one loan to the next). She's type type of person that lives just a little above her means.
Her last vehicle was a lease on a Nissan Frontier, because she wanted more than she could buy. My dad reluctantly co-signed (she was 25 at the time) so she could qualify for it, and away she went. The lease is about 8 months from being up, she already knows she owes about $2,000 in mile overage charges, and an additional penalty for an accident she had in it.
She's asked my mom to loan her $5,000 toward getting out of the Nissan lease and buying a 2010 Ford F150 so she can have the loan payment at about what she is paying on the lease (but I don't think she is factoring in paying back the "mom loan"). I think its almost a $30,000 truck. I don't think she has any money in savings, or, she's putting as much as she can/has toward this truck already.
To top it off, she asks my mom for this loan yesterday - the 1-year anniversary of the day my dad had the accident from which he ended up passing away on October 2, 2009. Its a big week for my family, and my sister "needs to know" this week, because they are holding the F150 for her. My mom is stressed enough about the big changes in her own financial future w/o my dad, I'm appalled at my sister's horrendous timing! /extra rant
My mom realizes giving this loan is only continued enabling of her overspending habit and will likely not do it. (excellent, I hope she sticks to her guns)
IMHO, She doesn't need a $30k vehicle AND if she can't afford it, she shouldn't buy it.
I'm concerned about her financial future. How can I help her learn to make more responsible decisions?